Many brokers consider the biggest threat to their business to be self-insurance. Insured clients can be driven in that direction through dissatisfaction with a number of key factors:
- The Credit Limit Service — this can be limits available, but it can also be about speed of limit delivery. We have worked with clients where this is a frustration because the credit team can be seen within their own business as a “Blocker”
- Rejected non-compliant claims — non-compliance can be viewed as an existential threat to the industry.
- The day-to-day complexity of running the programme. This is often expressed by clients as “I have to fit the insurer, rather than the insurer fitting me.”
There are several ways in which a client platform can be configured to apply for new limits or limit increases before they are needed, reducing the perception of the TCI, as a “Blocker” It can also be configured to alert the broker when insufficient cover is provided so that the broker can initiate an appeal or top-up process. This is just one example of the pro-active client/broker collaborations that can be achieved — it’s all in the configuration.
Manual processes, in and out of multiple systems almost invite non-compliance. A platform enables an automated, systematic approach to compliance, “front-to-back” from real-time DL limit calculation through reporting and audit trails. A compliant client, which can demonstrate that it has systematic processes, is more attractive to the underwriter, helping you to obtain improved terms.
A platform will automatically calculate and show the client what is available under the DL. It will do this in real time as payment experience or CRA data change. This obviates the need for the client to do annual reviews. It also obviates the need for manual Highest Cleared Balance calculations.
The client is alerted when anything needs to be reported to the underwriter. He or she can then review the alert and decide whether or not to send it in. Turnover Declarations are automatically produced. The system will do about 80% of the work, leaving the client to top and tail it as appropriate.
For many Co-pilot clients and their brokers this has proved to be the single most important issue.
- A platform can cope with the run-off or management of the old policy at the same time as the adoption of the new arrangements — events are automatically pointed in the right direction as they happen.
- Different Buyer Grade systems (1-10, 10-1, 1-100) are blended into a single grade to create clarity and ease of operation
Co-pilot clients and their brokers have achieved some very significant gains through having this flexibility, even when they have remained with the holding underwriter.
We are independent, performing the equivalent of the broker role but specialising in risk technology. Neither clients nor brokers can reasonably be expected to have the knowledge and experience to know how to structure a solution and to know which vendors to partner (see case studies).
Co-pilot is pioneering a concept which will bring the Trade Credit Insurance and Invoice Finance sectors closer together. We call it “Digital Collaboration”, and it will be to the benefit of all participants, creating opportunities for business development and even product development.
Perhaps the key thing is that a platform enables the TCI programme to fit the client, and for the client to derive enhanced satisfaction and use from its TCI programme. Brokers will benefit from being pro-active and having a client solution available. Co-pilot is here to help you make that a success story.